Is it worth the trouble to start a backdoor Roth IRA? Will this loophole be closed soon? I’m looking to start a backdoor Roth IRA to supplement my employer-sponsored retirement plan. Since there is only a $6500 contribution limit, is it worth it to go through the trouble of doing a backdoor Roth if this is something that is going to be outlawed soon? I’d like to be able to contribute to this account for the next 15-20 years. Is ther…

Backdoor Roth with less than $6500? Would you consider a backdoor roth if you don’t have the max contribution amount saved? Decided to add more to our brokerage, so I have about $3500 that I’m considering putting into a backdoor roth. Thoughts? submitted by /u/_kcs

Mega backdoor Roth for down payment? I at a point we’re for the first time I can seriously consider doing the mega back door Roth IRA I’m currently 30 and have 1 home we purchased in 2021 which takes roughly 20% of my take home pay. I want to start saving to buy a 2nd property in 5 years-ish. Would a Backdoor Roth be a good veichle to save money on and leverage as a down payment?…

Can I do BOTH a reduced Roth IRA contribution And a backdoor Roth in the same year? Is there any reason to do BOTH a reduced Roth IRA contribution and a backdoor Roth in the same year? to get to the total $6,500 limit? or should I just ignore the fact that I can do a reduced Roth IRA contribution and just do a backdoor Roth for the full $6,500? submitted by /u/stresspimp

Found out I can Mega Backdoor 401k, now what? So I found out my company does offer this. However, my after cash contributions can only come from my paycheck so it with it being October I don’t think I can do much this year anyway. ​ Can someone explain the benefits though? I put money in my 401k. Then I move it to a ROTH 401k. I then pay taxes again on this money. However, I already paid in…

Is there any reason not to immediately convert after-tax 401k money to a mega backdoor Roth? I currently defer part of my paycheck as after-tax 401k contributions (beyond the $22,500 IRS limit for traditional/Roth contributions), and I’ve been using my plan’s option to immediately convert that after-tax money to Roth. As it’s immediately converted every paycheck, there’s no pre-conversion growth, so no tax is owed on the conversion. As …

Mega Backdoor Roth IRA I have been trying to follow the flow chart the past few years and have been maxing out my 401k, backdoor Roth IRA, and putting some extra money into a personal brokerage account with Schwab and diversifying my portfolio with standard ETFs following advice from Bogleheads. I am switching jobs/companies to a place that offers Roth 401k/Mega Backd…

What is the benefit of doing a backdoor conversion of my traditional IRA into a roth IRA? I have an existing roth ira that I cannot contribute to anymore I became ineligible to contribute to a roth IRA this year so had to open a traditional ira. Is it worth doing a backdoor conversion to a roth ira? Of note, my company offers a 401k that i max out, as such I believe i have to make non-deductible contributions to my traditional ira? submitted by /u/essentialclt

Mega backdoor Roth vs Roth 401k Hi, my employer recently added the option to allocate after-tax dollars to an in-plan Roth conversion via a mega backdoor (up to a certain max). Along with this, I just received a raise and would like to route the majority of this to investments. For some context I already max out my 401k every year and don’t have any outstanding debt. I also ma…

How difficult are taxes with a rollover IRA and trying to do a backdoor roth IRA? I have 3+ 401ks from various old jobs and have been deciding what to do with them, after talking with some advisors, we came down to the options of either: A. Move all the old ones into my current jobs 401k B. Move all the old ones into a rollover IRA ​ I was leaning towards moving it all into a rollover IRA, however, my advisor mentioned that t…

Mega backdoor question Company 401(k) offers mega backdoor, but in-plan Roth conversions can only be made twice a year. Was planning to hold the funds in the plan’s money market option (vanguard) pre-conversion to keep growth to a minimum, and then convert in May/June and again in December. Thoughts? Never done this before so trying to avoid a big tax bill, and this s…

Backdoor Roth and IRA rollover account question I’m anticipating hitting the income limit on Roth IRA next year so I’m planning to do a backdoor roth instead. This year, I’ve been doing megabackdoor roths and I’m usually good about requesting the transfer immediately after each paycheck, but a little bit of pretax has trickled into an IRA rollover account. Now for backdoor conversion purposes…

FTX Employees Knew About the Backdoor to Alameda Months Before Collapse: WSJ The employees flagged their discovery to one of FTX’s director of engineering Nishad Singh but the problem never got fixed.

Mega Backdoor ROTH – Voya 401k After-Tax to Vanguard ROTH IRA. Am I doing something wrong? Hey folks – So… I’ve been doing a mega backdoor ROTH rollover multiple times – I was advised of this from a work colleague. I’ve also tried doing self-research as much as I can… However, I’m still getting some messages that scare me. ​ Basically, every 2 weeks with my paycheck – I will contribute to my 401k ROTH – and I’ll contribute to my…

What should I do with my old 401K with high fees? Rollover to IRA or is there tax implication if I did backdoor? I recently changed my job, and my current employer does not offer 401K. The 401K plan for my former employer charges $45/month record keeping fee. I obviously don’t want to pay this fee anymore, so is the best course of action for me to move the money (traditional 401K to traditional IRA, roth 401k to roth IRA) to an IRA? FYI: I contributed $65…

Do I need to worry about a tiny amount of money in my Trad IRA if I plan to Backdoor Roth in the future? My work has a great 401k and also allows for IRA rollovers into it. I had a trad IRA that I wanted to roll into my 401k so I can someday have the option of a backdoor Roth. I called and talked to Fidelity, did the transfer with them (both accounts were there so it was relatively easy) and everything went through smoothly within a few business da…

Backdoor Roth excess with dividend I did a backdoor Roth in Janruary and my account gained 1.53 in dividend before I did the conversion. Looking at it now it looks like when I did the conversion, I bought $6500 worth of Roth IRA funds after the conversion but the excess dividend is now in my Roth IRA settlement fund? I have now have $2.37 in my Roth IRA settlement fund after anot…

ELI5 Backdoor Roth IRA Can someone explain to me if I should be doing a Backdoor Roth IRA each year and how I would go about doing that? I am 43 and have a 401K at work (I contribute close to the max each year and get full company match with a current 110K balance), an IRA at Fidelity (250K balance which was funded from the 401K balances of previous jobs), a taxable i…

Roth IRA + Backdoor IRA Split for phase out bracket? I make 150,000, which is in the reduced bracket for ROTH IRA ($138,000 to $152,999). 1) Can I contribute the limit for ROTH IRA 6500*(1-(150000-138000)/15000)=1300. Then contribute 6500-1300=5200 to traditional (which I’ll convert to roth ira immediately). 2) How is different from doing a straight backdoor ira (6500 in traditional, then convert …

How to do a DIY backdoor Roth? Hello! I’ve recently hit a point where I’m no longer eligible to to contribute directly to a Roth IRA. This was as exciting as it was disappointing, as I’ve really favored the Roth IRA especially during the periods where I had no access to a 401k. Exciting because yay, higher income. It was a long and bumpy journey to get to this point. I did a…